How many drivers can I hire under LLC?

Yes, but he is still in need of having leases examined, liability examined and other legal issues.

 

Very True. They ALL definitely need a lawyer.

 

There is no limit to the number of employees or independent contractors you can have under any corporate structure. There are other restrictions on some business structures. A sub chapter S, LLC, LLP all have some restrictions, but not as to the number of contractors or employees. Whether you have one or one hundred thousand employees, there is a potential for litigation. In fact, you can be your only employee and still have the potential for litigation. There are two things than anyone who is in business needs; A good corporate attorney and a good CPA, preferably with trucking experience. If you plan on leasing on owner operators, you will need a lease agreement. A good attorney can put one together, but OOIDA has a lease agreement that is a good start. You can modify it as needed. Their legal department can look it over for you once you tweak it. Even if you use OOIDA's lease, I would still recommend that you run it by your own attorney. I don't see a need to pay a lawyer to start from scratch, but once the basic agreement has been drafted, your own lawyer should be able to give you the final once over.

The feds have basic requirements of what must be included in any lease agreement. But, you can add to what is required and custom tailor it to your business. You can go to the fmcsa website and do a search. Everything that needs to be included in the lease is on the website. Everything about your relationship should be listed in the agreement. You never take anything for granted. I hate long agreements, but this type of agreement needs to be long enough to cover your bases.

I would caution you about one thing. Check your insurance. Some don't want to see policy holders expand too quickly. They might want to restrict the number of owner operators you can lease on until you get more experience and a longer track record. In fact, I would start with the insurance before even putting the lease together.

 

Will these drivers all be under the direct influence of your dispatching?
If so, will you be paying taxes and offering insurance for said operators?

 

I believe he only wants to lease on owner operators. They will have their own equipment and should be considered independent contractors. He should only be required to pay the liability and cargo insurance for them. As independent contractors they will be responsible for their own taxes and either workers comp or an occupational accident policy.

 

So they will be breaking the law?

 

Have you never heard of Mercer or Landstar?

 

MrGud never answered me and it sounded as if his employees would be getting a 1099 which I seriously doubt comes from Mercer or Landstar.If so they are certainly part of the problem.

 

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Landstar and Mercer do not have employees that drive trucks.

They offer leases to owners who lease to their company and they provide the freight.

They LEGALLY send 1099 forms to these LEGAL operators.

 

That case has been tried and lost. If they are indeed getting all dispatch's from one source.